National Industrial Transformation Program

Funding program archive

This page preserves a dated funding-program record and links it to current project-planning guidance.

Publication date: the source publication date.

Status note: This archive does not confirm that applications are open, funds remain available or the earlier eligibility and co-funding settings still apply. Verify the current administrator page and guidelines.

What this article reported

The $40 million National Industrial Transformation Program (NIT Program), previously known as the Industrial Energy Transformation Studies (IETS) Program, will support the reduction of scope 1 and scope 2 emissions at existing or planned industrial facilities across Australia.

Who is this for?

The following target sectors are considered to be well aligned with the program objectives:

The program objectives are to:

Funding

The ARENA funding available under the Program is up to a total amount of $40 million and the total of all grants for a particular project under the Program will not exceed $15 million.

Stage 1 - Feasibility Studies: A Feasibility Study aims to provide an independent assessment that examines all aspects of a proposed Project, including technical, economic, financial, legal, and environmental considerations. The Study should demonstrate the economic case for the technology and associated energy or emission reductions while ensuring that the technological barriers are identified and are manageable.

Stage 2 - Implementation Stage: conditional funding for an implementation stage that may be a subsequent pilot, demonstration, or deployment.

Projects may target a reduction in Scope 1 and/or Scope 2 Greenhouse Gas Emissions through solutions including, but not limited to, investment in electrification, fuel switching or Energy Efficiency, or critical enabling infrastructure. ARENA funds cannot be used to fund basic technology research and research to prove feasibility.

The ARENA Grant may be used to cover up to 50% of the total eligible Study costs. Applications with higher co-contributions (that is. lower ARENA Grant request) may be considered of higher merit.

Relevant Guideline documents are as follows:

An Application can be submitted at any time while this Program remains open, but ARENA is likely to assess applications quarterly.

Eligibility:

You can apply if you:

How to use this information now

Before relying on a grant, confirm the current round, applicant and project eligibility, eligible expenditure, co-contribution, assessment process, closing date and evidence obligations. Build the technical case so the project remains understandable with grant support shown separately.

Separate source-reported facts from forecasts, targets and commentary. For a current project, retain the official source, version, effective date, assumptions and decision record in the evidence file.

What is the National Industrial Transformation Program and how does it support decarbonisation?

The National Industrial Transformation Program is a $40 million ARENA initiative that funds studies and demonstration projects to reduce scope 1 and scope 2 emissions at existing or planned industrial facilities across Australia. It targets agriculture, forestry, electricity, gas, water, waste, manufacturing, mining and transport sectors. The program supports three types of solutions: electrification, fuel switching, and energy efficiency improvements. Our capability includes feasibility assessment, emissions opportunity identification, and transition pathway development—services directly aligned with Stage 1 feasibility study requirements and Stage 2 implementation planning.

How are the two funding stages structured, and what should applicants prepare before applying?

Stage 1 provides funding for independent feasibility studies covering technical, economic, financial, legal and environmental considerations. Stage 2 offers conditional funding for subsequent pilot, demonstration or deployment activities. ARENA grants cover up to 50% of eligible study costs; applications requesting lower grant amounts with higher co-contributions may receive higher merit consideration. Before applying, prepare site energy data, baseline emissions calculations, technology options assessment, and cost assumptions. We can conduct the energy audit, emissions inventory and feasibility analysis needed to substantiate a Stage 1 application and position the project for Stage 2 consideration.

What eligibility criteria must applicants meet, and what role does ABN registration play?

Applicants must hold an Australian Business Number (ABN) at application and throughout the project life, be incorporated under the Corporations Act 2001, or be an Australian State/Territory-owned corporation, local government, or organisation supporting local governments. ABN registration establishes legal standing and ongoing compliance responsibility. The requirement applies continuously, not just at submission. We work with organisations at different corporate structures and can advise on entity boundaries, reporting period alignment and governance arrangements that support both funding compliance and operational continuity across the project lifecycle.

How should an industrial facility assess whether its decarbonisation project qualifies under the program?

Projects must target measurable scope 1 or scope 2 emissions reductions through electrification, fuel switching, energy efficiency or critical enabling infrastructure. The technology must be sufficiently mature to demonstrate in a real facility; ARENA does not fund basic research. Applicants should quantify existing energy use and emissions, identify the proposed technology or combination of technologies, estimate energy and emissions outcomes, and assess technical and commercial feasibility. Our energy audit, emissions baseline development and technology assessment services establish the evidence foundation. The Greenham case study illustrates how multi-site industrial businesses evaluate staged decarbonisation options across different technologies and locations.

What happens after a feasibility study is completed, and how does Stage 2 funding work?

A completed Stage 1 feasibility study provides independent validation of technical and commercial viability. Stage 2 then offers conditional funding to proceed with pilot, demonstration or deployment of the validated technology. The maximum grant across both stages for a single project is $15 million. Stage 2 funding depends on Stage 1 findings and applicant progress meeting agreed conditions. We support project development through both stages: helping structure the feasibility case, coordinate measurement and verification planning before installation, and document implementation progress. This staged approach aligns with our six-stage delivery model: assess, build the case, capture value, deliver, procure and perform.

How does Northmore Gordon help verify that applications are genuinely eligible before submission?

We advise that a grant page remaining online does not establish that applications are currently open. After identifying the program via the Australian Government Grants Finder, applicants should review the administering body's current guidelines, check the particular round's conditions and confirm application status directly with ARENA. Our funding-pathway assessment service identifies applicable schemes, checks scheme-specific eligibility criteria, and documents which evidence requirements remain unresolved. This prevents applications proceeding on outdated programme information and reduces the risk of investment decisions dependent on unconfirmed funding.

How should industrial facilities prepare investment cases and measurement plans for applications?

Investment cases should state the business problem, operational requirements, baseline energy and emissions data, proposed technology, cost assumptions and expected outcomes separately from unconfirmed funding. Measurement and verification plans must define the boundary, baseline, operating variables and data quality needed to demonstrate actual results after implementation. Present the project with and without conditional ARENA support so management understands the decision resilience. Our investment case guidance, measurement and verification services and project-brief templates support applications that distinguish forecast estimates from verified results and clearly assign implementation responsibilities.

Which industrial sectors does ARENA target, and how does sectoral fit affect application strength?

Target sectors are agriculture, forestry and fishing; electricity, gas, water and waste; manufacturing; mining and transport. Sectoral fit matters because projects addressing priority industry transition contribute to Australia's 2030 emissions reduction goals and net-zero-by-2050 objective. Demonstrating how a proposed technology reduces emissions at scale within a priority sector strengthens the application narrative and knowledge-sharing value. Our published case studies (Greenham in animal processing, MainStream Aquaculture in aquaculture, Kalafatis in fresh produce) illustrate sector-specific feasibility assessments and technology readiness evaluation. Understanding your sector's energy intensity, typical decarbonisation barriers and technology maturity improves application positioning.

What role does co-contribution play in application merit, and how should it be structured?

ARENA grants may cover up to 50% of eligible feasibility study costs. Applications requesting lower ARENA grant amounts—meaning higher applicant co-contributions—may receive higher merit consideration because they demonstrate stronger financial commitment and risk-sharing. Co-contributions can include direct cash contributions, in-kind services (such as technical expertise or site access), or partner funding. Document the source, quantum and basis of each co-contribution so the application clearly shows genuine commitment. We help structure realistic cost assumptions and co-funding partnerships that strengthen application competitiveness while maintaining commercially viable project economics.

How does Northmore Gordon's carbon advisory and emissions inventory work support NIT applications?

Our diagnostic workshops establish current emissions position and identify priority reduction opportunities. Emissions inventories quantify scope 1 and scope 2 baselines using facility-specific data and appropriate emissions factors. This evidence foundation directly supports NIT feasibility study requirements: demonstrating the magnitude of emissions reduction opportunity, validating the business case for the proposed technology, and establishing measurable baseline and target metrics. Transition planning services then connect the feasibility study output to implementation dependencies, capital requirements and operating assumptions—moving from study to demonstration or deployment readiness aligned with Stage 2 conditional funding criteria.

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